Oklahoma City’s SandRidge Energy announced Wednesday a $746 million acquisition and merger of Bonanza Creek Energy of Denver, Colorado.
Under the deal, SandRidge will acquire all of the outstanding shares of common stock of Bonanza Creek in a cash-and-stock transaction valued at $36 per share. The $746 million total transaction value is comprised of $398 million in cash and 18.89 million shares of SandRidge stock.
“This acquisition greatly enhances our existing portfolio by adding a deep inventory of drill-ready locations in the DJ Basin of Colorado and is highly complementary to our existing North Park, Northwest STACK and Mississippian assets,” said James Bennett, CEO at SandRidge.
The combined SandRidge-Bonanza Creek will operate more than 630,000 net acres focused in the Rockies and Mid-Continent producing approximately 55,000 Boepd.
“We are pleased to be able to accomplish this combination with SandRidge,” said Jack Vaughn, chairman of the board at Bonanza Creek. “This transaction represents an attractive opportunity for our shareholders to monetize a portion of their holdings through the cash consideration as well as to participate in the continued upside of the combined company.”
SandRidge is acquiring all of Bonanza Creek’s assets. Bonanza Creek has zero debt and $31 million in cash on hand. After the transaction, shareholders of Bonanza Creek will own between 31.4% and 35.8% of the outstanding shares of SandRidge. One of the independent directors of Bonanza Creek will join the Board of Directors of SandRidge.
Listen to part of the announcement by James Bennett, SandRidge’s CEO.
